Supercuts 2010 Annual Report Download - page 127

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Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
12. LITIGATION
The Company is a defendant in various lawsuits and claims arising out of the normal course of business. Like certain other large retail
employers, the Company has been faced with allegations of purported class-wide consumer and wage and hour violations. Litigation is
inherently unpredictable and the outcome of these matters cannot presently be determined. Although the Company's counsel believes that the
Company has valid defenses in these matters, it could in the future incur judgments or enter into settlements of claims that could have a
material adverse effect on its results of operations in any particular period.
During fiscal year 2010, the Company recorded a $5.2 million charge related to the settlement of two legal claims regarding certain
customer and employee matters. Additionally, the Company has commitment to provide discount coupons. As of June 30, 2010, there was a
$4.3 million remaining liability recorded within accrued expenses related to the settlements.
13. INCOME TAXES
The components of income before income taxes are as follows:
The provision for income taxes consists of:
123
2010 2009 2008
(Dollars in thousands)
Income before income
taxes:
United States
$
35,289
$
112,524
$
126,627
International
17,925
(33,758
)
10,607
$
53,214
$
78,766
$
137,234
2010 2009 2008
(Dollars in thousands)
Current:
United States
$
5,580
$
48,935
$
53,694
International
14,882
(3,142
)
4,262
Deferred:
United States
4,007
568
(4,674
)
International
1,108
(4,411
)
900
$
25,577
$
41,950
$
54,182